80 to 90% of projects suffered delays from land acquisition (of 15 to 20% of project time)

Viability Gap Funding (up to 40% of costs)

Standardization of bidding documents and contracts

National Highway Development Programme (NHDP)

Mainly brownfield concession (increasing number of lanes of existing roads)

Over 230 PPP projects (mostly after 2005)Recent decline in the number of deals Questions raised about risk transfers (e.g. traffic/demand risk, land acquisition)Cost to GovernmentYearsTariffs paid by GovernmentCost to GovernmentYearsConstructionCostOperation and Maintenance CostCost to GovernmentYearsConstructionCostOperation and Maintenance CostCost OverrunConstruction DelayO&M Cost OverrunYearsCost to GovernmentTariffs paid by GovernmentTraditional ProcurementRisksPublic-Private PartnershipsConstruction & operation risks are transferredConstruction and Operation RisksWhat type of government support?(e.g. minimum revenue guarantee, viability gap funding, availability payments)Replacing roads due to poor maintenance is 3 times more expensive than maintaining them wellDiscipline in maintenance(e.g. remuneration linked to the quality of the asset)Lower funding pressure on the governmentAround $ 300 billionrequired every year300,000 km of roads added every yearStrong decline recentlyIn India, 80 to 90% of projects suffered delays from land acquisition (of 15 to 20% of project time)source: McKinseySecuring 100% of land before tendering? Adapting land acquisition law?